"Elliott continues to view the terms of the proposed takeover as unfair, unlawful, and significantly damaging to the interests of Samsung C&T shareholders," Paul Singer's hedge fund, Elliott Management, said in a statement.

Elliott, which has a 7% stake in Samsung C&T, recognized that the Lees are attempting the merger in order to ensure a smooth succession between generations in its released. Still, it thinks the $9 billion sale price the Lees have floated seriously undervalues the Samsung C&T and overvalues its parent company, Cheil.

Elliott also argues that there are regulatory issues with the merger including a violation of the Fair Trade Act, and that Cheil is actually just an unregulated financial holding company.